Lyon, October 27, 2021 — Elkem, a global leader in silicon-based advanced materials, today announces a strategic investment plan to unlock new specialty silicones supply for customers in Europe, the Middle East and Africa (EMEA) and the Americas. The company will invest around €36 million (NOK 350 million) to upgrade and debottleneck its silicone upstream plant in Roussillon, France.
The board of directors has approved a 20,000 metric tons capacity expansion, bringing the effective silicone intermediates capacity from Elkem’s upstream plant in Roussillon, France to 100,000 metric tons per annum, while delivering productivity, cost, sustainability and climate protection improvements.
“At a time when silicones and their raw materials are in shortage, the expansion is cornerstone to meeting the future needs of our specialty silicones customers in EMEA and the Americas, where the market is expected to grow by around 6% per year between 2020 and 2025,” said Frédéric Jacquin, Senior Vice President in charge of Elkem’s Silicones Division. “This investment complements the ongoing capacity expansion at our Xinghuo site in China, which primarily serves growth in the Asia-Pacific region and further strengthens our cost position as well as environmental performance.”
Specialty silicones bring unique properties and performances to a wide panel of cutting-edge and sustainability-aligned markets – from electric and hybrid vehicles, to semi-conductors, decarbonized energies, 3D printing, healthcare & medical devices, aerospace, defense, or sustainable buildings.
The investment plan includes installing new equipment and major technology upgrades in key parts of the plant to improve Elkem Roussillon’s cost position and environmental performance, through higher materials efficiency, more energy efficient processes, reduced waste, and state-of-the-art water effluents treatment. It is the largest organic investment project in Elkem’s European silicones franchise in a decade. It is anticipated to come online during the third quarter of 2023.
The decision confirms the strategic importance of the Rhône Valley for Elkem’s silicones division, after the company announced an agreement to acquire a third manufacturing site in the area, and the opening of a new global research & innovation center over the past few months.
It also highlights Elkem’s commitment to the Roussillon chemical platform, which is undergoing landmark transformations to protect its competitiveness and decarbonize its operations, thanks to dynamic partnerships between industrial and local stakeholders – including Elkem.
laurent.leservoisier@elkem.com
About Elkem
Elkem is one of the world’s leading providers of advanced material solutions shaping a better and more sustainable future. The company develops silicones, silicon products and carbon solutions by combining natural raw materials, renewable energy and human ingenuity. Elkem helps its customers create and improve essential innovations like electric mobility, digital communications, health and personal care as well as smarter and more sustainable cities. With a strong track record since 1904, its global team of more than 6,800 people has a joint commitment to stakeholders: Delivering your potential. In 2020, Elkem was rated among the world’s top 5% on climate and achieved an operating income of NOK 24.7 billion. Elkem is listed on the Oslo Stock Exchange (ticker: ELK). www.elkem.com
About Elkem Silicones
Elkem Silicones has more than 4,200 employees dedicated to delivering your potential by providing you innovative silicone solutions with a personal touch. Elkem Silicones, a division of Elkem, is a global leader in fully integrated silicone manufacturing, operating 13 multi-functional manufacturing sites and 13 Research & Innovation centers around the globe. Elkem Silicones offers a full range of silicone technologies for diverse specialty markets including aerospace, automotive, construction, consumer goods, energy, healthcare, paper, personal care and textiles. Elkem Silicones is committed to create new, innovative and green solutions and business models that promote a sustainable future. To learn more, please visit Elkem Silicones Website
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